Stora Enso Launches New Consumer Board Line to Boost Production
Stora Enso Launches New Consumer Board Line in Oulu
Stora Enso's latest investment in its Oulu facility marks a significant milestone as the new consumer packaging board line begins production ramp-up. With customer deliveries projected for the near future, this development signifies the company's commitment to innovative packaging solutions.
The Journey to the New Production Line
In a strategic move made in 2022, Stora Enso decided to convert its remaining idle paper machine at the Oulu site to accommodate a highly flexible consumer packaging board line. This transformation aims for an impressive annual capacity of 750,000 tonnes, which is poised to enhance the company’s position in the marketplace.
The dedicated project has followed an outlined timeline and budget, estimated at about EUR 1 billion. The packaging board line is anticipated to reach its EBITDA breakeven point by the end of 2025, with future annual sales expected to touch EUR 800 million by 2027. This momentum showcases the effectiveness of Stora Enso's operational strategies.
Renewable Packaging: The Future of Stora Enso
Stora Enso recognizes renewable packaging as its largest growth segment. The new production line is designed to improve the customer offering in segments like folding box board (FBB) and coated unbleached kraft (CUK). Targeted applications for this packaging will encompass a variety of needs, including frozen, chilled and dry food, alongside beverage multi-packaging solutions for customers across regions.
Modern Features for Increased Efficiency
The Oulu facility’s new line is recognized to be the most modern and cost-efficient within Europe. Stora Enso's President and CEO, Hans Sohlström, emphasizes the significance of this investment, which transforms Oulu into the largest production facility within the company's portfolio, creating a comprehensive mega-site. This setup will equip the site to focus on future packaging grades, leading to improvements in profitability and competitiveness.
Optimizing Resources and Growth Potential
With the addition of this consumer board production line and integrating previous conversions, the Oulu site is set to deliver unbleached pulp, kraftliner, and consumer board in both reels and sheets. Approximately 650 people are employed at the Oulu production site, reflecting Stora Enso's commitment to local employment and sustainable practices. The anticipated increase in wood consumption of about one million cubic meters to around 3.5 million cubic meters annually reinforces the site's operational scale.
Stora Enso is dedicated to utilizing a locally sourced wood supply for production, complemented by pulp from its Enocell site and advantages from the Veracel site in Brazil. Additionally, the ongoing acquisition of Junnikkala sawmills is expected to bolster the long-term, cost-efficient supply of essential raw materials like wood chips, pulpwood, and biomass.
Company Overview and Future Aspirations
At its core, Stora Enso is driven by the philosophy that everything produced from fossil-based materials today can be developed from trees in the future. As a leader in renewable products, the company has a strong stance in sectors such as packaging, biomaterials, and construction. With approximately 19,000 employees and sales recorded at roughly EUR 9 billion in 2024, Stora Enso remains a significant entity in the renewable industry.
Stora Enso’s shares are actively traded on the Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R), with additional trading in the U.S. OTC Markets as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). The company continues to seek innovative supply chain solutions while optimizing its existing operations to drive growth and enhance sustainability initiatives.
Frequently Asked Questions
What is the capacity of the new consumer board line in Oulu?
The new consumer board line at the Oulu site is designed to have an annual capacity of 750,000 tonnes.
When are the first customer deliveries expected?
The first customer deliveries from the new production line are anticipated in the second quarter of 2025.
What types of products will the Oulu facility produce?
The Oulu facility will produce unbleached pulp, kraftliner, and consumer board in both reels and sheets.
How many people work at the Oulu production site?
Approximately 650 people are employed at the Oulu production site.
What is Stora Enso's approach to sustainability?
Stora Enso focuses on renewable resources, aiming to replace fossil-based materials with tree-based products, reinforcing its commitment to sustainability and innovation.
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